Tuesday, July 22, 2014

Detroit Update: Pensioners vote in favor of Grand Bargain

Detroit Free Press story here. This was as expected. The real question is whether Judge Rhodes will force the other creditors to accept the deal: "Unless the city reaches a settlement with the financial creditors — which would currently get anywhere from 0 to 10 cents on the dollar for their debt — Rhodes will have to decide whether to force them to accept cuts. The financial creditors argue that the grand bargain is illegally constructed to benefit pensioners and diminish the value of the DIA art. They want the city to consider a sale of the city-owned DIA or some of its artwork."